SEYCHELLES OWES 1.3 BILLION DOLLARS-DEBT MUST BE AUDITED!
It has now been confirmed that Seychelles officially owes 1.3 billion dollars in domestic and external debts which we all have to pay now. Although the government has given up trying to solve the debt crisis all by itself and has thrown in the towel by calling in the IMF, most agree that this would not solve our problems. We must solve our problems ourselves and our best chance at the moment is to focus on debt forgiveness, and, to a lesser extent, debt re-scheduling. However, in order to get the bulk of our debts forgiven the government must embark on a debt auditing exercise to account for each and every dollar borrowed by the SPPF government. Unless the government can account for all the loans taken and explain how the money was spent, it is difficult to see how our creditors would even consider our request for debt forgiveness.
The Minister of Finance has openly stated that the money has been spent on the welfare of the people, infrastructure and development in the country. If this is true, then it should be easy for the government to ask Price Waterhouse or even Ernst and Young to audit the 1.3 billion dollar debt. We know that the bulk of the money has been stolen by a very powerful and privileged few in government and they in turn have been emulated by others who are not so powerful but just as greedy and immoral. If nothing else, such an exercise will reveal who the culprits are and they can be asked to return the money and get amnesty or face prosecution. If the government refuses to embark on such an exercise then it will clearly show that this government has something to hide and it may very well be protecting people within their own ranks who have stolen millions of dollars of public money.
How can the government legitimately account for 1.3 billion dollars in loans when they ought to have known that such a massive debt is simply unsustainable? Why did the government continue to borrow money even when it knew it does not have the ability to repay? And why was the electorate not informed of the true state of our economy and country when they voted for their President in 2006? That election was won on false pretence and therefore has no legitimacy. Would the people have voted the same way had they known all the facts? Clearly these are pertinent questions which need to be addressed. It seems that the government spends all its time trying to figure out where to get the next loan and the next one after that in the name of the people to keep the country afloat, instead of running the country like a government is supposed to.
At present, the government has been reduced to a mere crisis management agency as everything rapidly collapsed around their ears. Even the 26 million dollars standby arrangement offered by IMF is pittance compared to the billions of dollars the IMF is giving to crisis hit Iceland and Pakistan. Instead of making a counter offer, the SPPF government was so desperate for fresh cash that they grabbed the 26 million dollar pittance with both hands and feet. But the money is only a drop in the ocean and would barely make a difference here. Mr. Pierre Laporte, the Central Bank Governor, seems to suggest in the press conference that they had to take the money as the Central Bank Reserve had dwindled to less than one day’s supply, a dangerously low level by any standard and which is not in accordance with international norms and regulations. Unless the government calls for a thorough audit of the 1.3 billion dollar debt, by an independent accountancy firm of international repute, there will always be justifiable accusation of corruption leveled at the administration of President James Alix Michel and his predecessor. Such an audit, if carried out, will be consistent with President James Michel’s commitment to transparent and accountable government and it will prove that he is serious and not merely paying lip service to the ideals of good governance.
Source: LNSW